Finding 1181754 (2025-001)

Material Weakness Repeat Finding
Requirement
N
Questioned Costs
-
Year
2025
Accepted
2026-03-20
Audit: 393017
Organization: Diversity Health Center, Inc. (GA)
Auditor: TERRY HORNE CPA

AI Summary

  • Core Issue: Most board members or their families do not use health center services, violating compliance requirements.
  • Impacted Requirements: Over 50% of board members must be active users of the health center to provide effective input on strategy and policy.
  • Recommended Follow-Up: Implement procedures to ensure compliance by having more than 50% of board members utilize health center services.

Finding Text

Finding: 2025-001-Board Member Compliance Federal Programs: Department of Health and Human Services Health Center Program Cluster Assistance Listing No. - 93.224 and 93.527 Criteria: Health Center Program Compliance Manual Condition: A majority of the board members or their immediate family are not users of the health center services. Compliance conditions state that more than fifty percent of board members should “utilize the health center as their principal source of primary health care” in order for them to give substantive input into the Organization’s strategic direction and policy. Cause: The above exception resulted from the failure to follow established procedures requiring board members or their immediate families to be active users of the health center. Effect: This non-compliance with federal grant requirements could result in a reduction of grant funds or additional grant restrictions. Questioned Costs: None reported Context/Sampling: The finding appears to be a systemic issue. Repeat Finding from Prior Year: No Recommendation: It is recommended that procedures be established to ensure that more than fifty percent of board members are active users of the health center. Views of Responsible Officials: Management concurs with the audit finding. Procedures will be established to ensure that more than 50 percent of the board members are users of the health center. Contact Person: Stephanie Jones-Heath, CEO Anticipated Date of Completion: May 31, 2026

Corrective Action Plan

In Finding 2025-001, a condition was noted that a majority of the board members or their immediate family are not users of the health center services. Compliance conditions state that more than fifty percent of board members should “utilize the health center as their principal source of primary health care” in order for them to give substantive input into the Organization’s strategic direction and policy. Management recognizes the importance of complying with board member compliance guidelines. In response to Finding 2025-001, procedures will be established to ensure that more than 50 percent of the board members are users of the health center.

Categories

HUD Housing Programs

Other Findings in this Audit

  • 1181753 2025-001
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
93.224 CONSOLIDATED HEALTH CENTERS (COMMUNITY HEALTH CENTERS, MIGRANT HEALTH CENTERS, HEALTH CARE FOR THE HOMELESS, AND PUBLIC HOUSING PRIMARY CARE) $2.14M
93.217 FAMILY PLANNING_SERVICES $47,500
93.527 AFFORDABLE CARE ACT (ACA) GRANTS FOR NEW AND EXPANDED SERVICES UNDER THE HEALTH CENTER PROGRAM $32,234